The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has disclosed that a significant portion of the reported $7 billion outstanding foreign exchange liabilities of the federal government, approximately $2.4 billion, are not valid for settlement. In an exclusive interview with ARISE NEWS, Cardoso revealed that the CBN has already settled verified FX requests totalling $2.3 billion, leaving the current total outstanding FX obligations at $2.2 billion.
Cardoso attributed part of the headline $7 billion outstanding FX claims to fraudulent activities, citing the findings of a forensic audit conducted by Deloitte Management Consultant, commissioned by the apex bank. He expressed confidence in resolving the outstanding FX liabilities promptly and emphasized the CBN’s commitment to only paying for validly constituted FX requests.
Regarding the CBN’s role in the economy, Cardoso clarified that while interventions are common globally, they need to be carefully managed to prevent destabilizing effects. He noted concerns about excessive liquidity injections into the economy, which have contributed to distortions, including inflation. Cardoso stressed the importance of focusing on the CBN’s primary mandate of controlling inflation, stabilizing prices, and ensuring a stable economic environment.
In addressing the outstanding FX obligations, Cardoso highlighted the CBN’s efforts to engage authorized dealers and resolve discrepancies. He expressed optimism about clearing the backlog shortly and moving forward with other initiatives. Additionally, he dismissed speculations about plans to convert domiciliary accounts to naira accounts as part of currency stabilization reforms.
In summary, Cardoso reiterated the CBN’s commitment to resolving outstanding FX liabilities and emphasized the need for prudent management of interventions to avoid adverse effects on the economy. He emphasized the importance of partnering with capable entities to ensure effective implementation and management of interventions.